Private Sector

Liquor baron Ponty Chadha and his brother who were killed in a fratricide incident had another business not widely known. Ponty had recently acquired the concession to run public transport buses in Delhi. His company had won the bids for three clusters with a combined fleet of 600-odd vehicles. Now questions are being asked about who will run the business.

Growth is back on the agenda, says the government. It is hoping that with pushy announcements foreign and Indian investment will miraculously start pouring in and infrastructure will be the name of the game once again. But this assumption ignores one crucial detail: currently, public-private partnerships (PPPs) in infrastructure are on the cusp of disaster. The country needs a different strategy to build public services infrastructure.

Just consider. Every time petrol prices are raised, oil companies end up losing more money. Simply because the price differential between petrol and diesel increases further, and people gravitate towards diesel vehicles. More the use of diesel, more the oil companies bleed. Worse, we all bleed because diesel vehicles add to toxic pollution in our cities, which, in turn, adds to ill health and treatment costs.

I suspect Indian scientists have retired hurt to the pavilion. They were exposed to nasty public scrutiny on a deal made by a premier science research establishment, Indian Space Research Organisation (ISRO), with Devas, a private company, on the allocation of spectrum. The public’s verdict was that the arrangement was a scandal; public resources had been given away for a song.

I suspect Indian scientists have retired hurt to the pavilion. They were exposed to nasty public scrutiny on a deal made by a premier science research establishment, Indian Space Research Organisation (ISRO), with Devas, a private company, on the allocation of spectrum. The public’s verdict was that the arrangement was a scandal; public resources had been given away for a song. The government, already scam-bruised, hastily scrapped the contract. Since then there has been dead silence among the powerful scientific leaders of the country, with one exception. Kiran Karnik, a former employee of ISRO and board member of Devas, spoke out. He explained it is wrong to equate this deal with the scam of mobile telephony, where it was alleged that the minister fiddled with procedures to hand out spectrum at throwaway prices. The reason is that this band of spectrum called S-band, reserved for use in satellites, is different from terrestrial spectrum used by mobile operators. In the S-band the users are different, risks are higher and the customer base is smaller. Hence, the cost calculations done for terrestrial spectrum cannot be used to estimate the loss to the exchequer in the ISRO-Devas contract.